Many Most Profitable Small Business Ideas in India for 2020

Starting your own business is everyone’s dream. However, most budding entrepreneurs see their dreams nipped in the bud due to the paucity of funds for investment or profitable business ideas.

Should you possess some special skills, you can start your own small business with low investment. While some such small business ideas can be operated from your home, in other cases, you may need to lease small premises.

Funding small business: Generally, small businesses begin with whatever little capital you may have. Loans on very soft terms are also offered by community organizations and cooperative credit societies. You may consider procuring a loan to fund your small business idea.

Plan well for success: Remember, failing to plan is planning to fail. Therefore, plan your business well in advance before launch. Study the market for the product or service you plan to offer. Further, acquaint yourself well with your potential competitors and their offerings. Talk to people you trust and seek advice if necessary. Additionally, build a database of your prospective customers before launch.

Many New & Best Small Business Ideas for 2020

Once you have completed the above homework, you are almost set to open your small business with low investment. Here are Many new & creative small business ideas with low investment that we recommend to start in 2020.


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It’s an excellent opportunity for people who are looking for a low investment business idea. You can start with as low as Rs 5000.

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This is a very hot and new business idea in India. You can start your own e-commerce business but without any big investment and without stocking any product.

The great thing about dropshipping is that you don’t need to purchase any product unless you get an order from a customer.

Here are the steps you need to start a dropshipping business-

  • Find a supplier like AliExpress, IndiaMart, etc. and tie-up with them.
  • Create an eCommerce website and list what you want to sell from this supplier.
  • Promote your website through Facebook and another online marketing channel.
  • Receive orders.
  • Place an order with the supplier and ask them to deliver the product to the customer’s address.
  • Make profits.

Your profit will be the margin between the supplier price and your selling price. You can sell as high as 3 timers the price of the supplier.

Digital Marketing

This is a trending business in India right now and there are unlimited opportunities in digital marketing.

You can start a digital marketing agency, you can do a freelance business, you can launch your start-up, you can even promote different products through digital marketing and make money.

But, you need to have excellent digital marketing skills before you start any business in digital marketing. You can learn digital marketing online or join a training center.

It’s very difficult to find good digital marketing training institutes in India. Most of the people, who provide training are not skilled themselves.

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Mobile phone repair / accessories / recharge

India will have nearly 800 million smartphone users by the end of 2022. Further, this figure will grow exponentially as more brands and cheaper variants enter the market.

Consequently, the demand for outlets and individuals who offer repairs of mobile phones is expected to increase manifold. You can also sell accessories and credit recharge.

Meal service (Tiffin)

One of the best small business ideas for women. Nowadays, the demand for home and workplace delivery of meals has increased vastly.

You can launch your small business with low investment right from your kitchen by preparing fresh, wholesome meals and referring them to offices and homes.

Network marketing

Network marketing, also known as Multi-Level Marketing is an excellent small business. However, you need to tie-up with well-reputed brands that offer great products.

A search on the Internet will reveal some such major brands, whose products are always in demand.

Thanks to rising medical inflation, people nowadays look for unconventional health and nutritional products and supplements as well as skincare and beauty products.

You can grow your network marketing business by promoting its products in your friends’ circle. You can also promote it online by creating a website.

Babysitting / Childcare

This is a small business for women that can launch from home or small premises. Investment required for opening a babysitting and childcare service is very minimal.

All you need to invest in are a few toys, cribs and mattresses.

Add a few packets of disposable diapers, antiseptic lotions, and a first aid box as well. Nowadays, babysitting and childcare facilities are in very high demand due to the rise in several working couples.

Mobile garage- (Small business for men)

Everyone has seen cars, scooters and motorbikes breakdown in the middle of busy roads. The unfortunate owner of these vehicles usually faces a dilemma about where to get repairs. For such eventualities, you can offer a mobile garage.

For this business with low investment, you will require a car, mobile phone and all the tools required to repair a stalled vehicle. All you need to do is, rush to the place where the vehicle is parked to perform repairs.

Aquariums & fish

This is a small business idea you can enter with low investment and also from your home. For this trade, you need to buy a few aquariums of various sizes and different kinds of fish that are popular as pets.

You can also breed fish by keeping special tanks.

Additionally, selling air pumps, fish food and decorative stuff for aquariums will net you more profits. Aquariums are also popular as gift items. However, you need to be well versed in handling various species of fish.

Read this Article:- 50 Latest Part Time Jobs & Online Jobs from Home (Earn Rs 40,000 Per Month)

Nursery & garden requirements

Once again, this is a great small business idea with low investment. Due to increased awareness about environment, many people now maintain small plants and shrubs at their apartments and offices.

You can open this business from your home. Additionally, you can sell packets of fertilizers, seeds and other garden requirements.

Jams, pickles & sauces

As people become increasingly conscious about their health, the demand for healthier, non-commercial jams, pickles, sauces, and ketchup is on the rise.

Moreover, consumers nowadays are wary of consuming foodstuff that contains chemicals of any sort. Given this scenario, you can manufacture jams, pickles, sauces, and ketchup with traditional recipes that are chemical-free.

Pet care

Understandably, people love their pets. However, while traveling for a holiday or business, they are unable to take their pets along. Hence, people look for services that will care for their pets while they are away.

If you are well versed in handling pets, this is a great business you may consider. Again, this is a small business that requires low investment.

Fragrant candles- (Creative business idea)

Let your creativity and sense of fragrances run wild. Making candles is fairly easy. Fragrant oils are readily available. With some training and experience, you can make fragrant candles of all shapes, sizes, and colors.

Nowadays, such candles are becoming increasingly popular for meditation and relaxation purposes.

Cakes & Bakes

Armed with a good oven, you can open a low investment business making cakes, muffins, cookies, and other bakery items

This small business has huge potential since consumers are always looking for new, better tastes at economical rates. You will, however, require great skills in preparing these baked delicacies.

Read this Article:- Top 9 Highest Paying Jobs in India For You to Make a Career In

Travel services

Offering travel and related services can see you make instant profits. Tie-up with long-distance bus services offers online reservation of rail tickets and reserve hotels at various destinations for clients.

You can also add local sight-seeing and other requirements for your customers. You can either collaborate with a major travel agent or enter into deals with service providers and get commissions for every reservation you make.

Small business idea to start an Ethnic food store

Should you be well acquainted with the palates of various communities of India, you can open a small ethnic food store with low investment.

All you need to do is procurement products that have a long shelf life, from suppliers located in those particular regions and sell them to your target communities.

Antique furniture restoration

Nobody wants to part with antique furniture. Simply because they have sentimental values attached. Restoring or repairing damaged antique furniture is one business you can look at if you have a sense of aesthetics and the required skills.

You can also hire craftsmen to do the restoration at the premises of your customer. Restoring antique furniture is very intricate and you will require excellent workers.

CCTV & surveillance

Increasingly, people are becoming security conscious. They want to protect their families and themselves against theft, rape, and other crime.

Consequently, more and more people are installing CCTV and surveillance cameras in their homes and offices. This is a low investment and high returns small business idea.

Address verification service

Banks, credit card issuers and mobile phone companies often require physical verification of addresses provided by customers. They do so to prevent fraud and defaults.

This is a low investment business that is again in demand nowadays. However, you will require a vehicle and might require manpower to visit the customer addresses provided by a bank and other service providers.

The business idea to make Religious items

India has a huge market for items required by followers of various faiths. These include pictures of deities, incense sticks, cotton wicks for lamps, candles, prayer beads and other minor paraphernalia.

Making these at home or a small premise requires low investment. There is no dearth of customers for such stuff.

Read More:- 11 Latest Online Jobs from Home – No Investment to Earn Money

Postal labeling and sorting

India Post requires all bulk mail to be labeled with addresses and sorted according to the Postal Index Number (PIN) code. Banks, companies listed on the stock market, bulk mailers look for small businesses that can provide this service.

Looking, since they do not need to employ staff for the purpose. You will require a vehicle and some manpower to enter this low investment small business.

Imported products

Indians returning home after a foreign tour tends to buy stuff they can sell locally. They do so to defray the costs of their foreign trip

Products they sell include fragrances, cosmetics, cigarettes, liquor, chocolates, food items, and T-shirts among others. The craze for foreign goods in India ensures you have a good market for your wares.

Soya products

Nowadays, an increasing number of people are going vegan. Soya products such as soya milk, tofu (soya curds), soya flour and soya chunks provide a great alternative to meat.

Manufacturing Soya products is fairly easy, provided you have the required equipment. It is also a low investment small business. You can get a small loan to start this micro-industry.

Unique ice creams

Some years ago, people would have balked at the idea of ​​ice cream made with tomato or capsicum. However, such unique ice creams are trending nowadays.

Unfortunately, manufacturers of such rare ice creams are few despite the huge market. If you are daring enough, enter this low investment business of unique ice creams.

Used Laptops

Considered a luxury some years ago, laptops are ubiquitous now. Shopping trends, people sell their used laptops and buy those with the latest features and higher configuration.

Despite this, there exists a huge market for used laptops. Buying, refurbishing and selling such a used laptop is a low investment, high returns business you can consider.


Generally, there are two types of signboards used by businesses and shops: Painted and Neon. Every small business and commercial establishment requires signboards.

The demand is for creative yet low-cost signboards that aptly advertise the business. Making and comparing signboards of all types, according to specifications of the business owner, is a business in demand around the year.

Manpower supply

Every business requires more manpower almost daily. This is especially true with restaurants where staff attrition rates are rather high.

Waiters and cooks leave at short notice or merely abandon work. This puts the business owner to great inconvenience.

Occasionally, households also require manpower for cleaning the home. With some ingenuity and low investment, you can help restaurants overcome their manpower problems and earn a handsome income almost daily.

Stationery supply

Schools, colleges and other educational institutions, as well as businesses, require bulk stationery. These include customized letterheads, business cards, envelopes, invoice books, receipt books, and motley others.

With little investment and some contacts, you can enter into this evergreen business. You will need agreements with printing presses and a few samples to enter this profitable venture.

Digitizing audio and video

Millions of people across India possess audio and videotapes of their favorite music and movies, recordings of special occasions and other stuff. However, audio and video cassette players are now rare.

Nowadays, DVDs and digital forms of music storage are popular. If you possess the older type record players, audio and video cassette players, you can enter into this business of digitizing old recordings.

You will need to invest in equipment that allows you to copy audio and video in the older formats to the latest ones.

Gardening services

Individuals and housing societies owning gardens are generally unable to attend to their favorite and sometimes expensive plants, trees and lawns.

Therefore, they look for small businesses that can perform the required task.

You will need to invest in some gardening equipment and hire manpower to enter into this small business, which is also round-the-year in demand.

Glamor photography

Undoubtedly, every male and female want to appear glamorous. Glamorous pictures are used for several purposes: To apply for jobs as models, actors, and actresses, cabin crew with airlines or matrimony.

For those with an eye for photography, taking glamorous pictures is a great business to open with a small investment.

You will have to buy a professional camera and related equipment. Taking pictures can be done at the residence of the customer or public places. Alternatively, you can hire a studio by the hour, if needed.

Caregiver service

Indisposed senior citizens and people in hospitals require caregivers. Awaiting, since their kin is busy at work or unable to attend to their needs. Caregiver services are fast gaining momentum in India.

Understandably, you will require some manpower to provide such a service. Several unemployed women and men are interested in working as caregivers for businesses that offer the service.

Computerized horoscopes

Understandably, this is one of the most common low investment businesses in India. All it requires a computer with the required software, a printer and fancy paper to print the horoscope.

However, in a land of superstitions, computerized horoscopes continue to remain in high demand. The reason is simple: People do not rely on results from only one computer.

They want multiple horoscopes from different sources.

Corporate gifts

India has a rich culture of corporate gifting. It continues round the year. Corporate gifts include pens, wallets, mugs and a wide range of stuff given to staff and business associates.

Usually, these items are printed with the written name and logo. With adequate samples and contacts, you too can open this business with low investment.

You will need a wide range of products and their samples to display to clients.

Homemade chocolates

With some chocolate making skills and little investment, you can enter into this highly profitable small business idea. Homemade chocolates are sold by almost every major pastry shop and gift store.

They are in high demand since their taste is much different from bulk manufactured varieties commonly available in the market.

Several companies order homemade chocolates to send as gifts to their business associates. Such chocolates are in great demand during festive and wedding seasons too.


A common system worldwide is to affix the nameplate outside the door of a house or apartment. Moreover, people also install large names outside buildings, villas, and bungalows.

They prefer artistically designed nameplates or simple ones. Making these nameplates is a low investment small business that anyone can begin with ease. The demand for these nameplates is round-the-year and you can make decent profits from your venture.

Wedding gowns

Earlier, wedding gowns were the mainstay of the Christian community. However, over the years, the concept of wedding gowns has become popular among people of other faiths too.

Bollywood movies have also contributed immensely to popularizing the wedding gown.

For men and women who are adept at fashion designing, making wedding gowns is a great, low investment and high returns small business idea.

Additionally, you can also offer other fashion wear to ensure income round the year.

Chips and wafers

Chips and wafers are consumed almost everywhere: cinema halls, schools, homes, bars, on buses and trains. The list is endless. Manufacturing chips and wafers with potato, raw banana, jackfruit, tapioca, and other starchy roots are fairly easy.

Equipment required is not expensive.

However, you need to ensure proper supply of raw material and have good packaging. Generally, shops and bars order such chips and wafers in bulk.

Idli and dosa batter- (Best small business idea in India)

The mainstay of south Indian communities, Idli and Dosa are now popular across India. However, not everyone can prepare the batter required for making these dishes.

It requires a proper blend of rice and cereals.

The batter has also to be fermented to the right degree to ensure it gives great tasting Idli and Dosa.

Packaged Idli and Dosa batter is fast becoming popular, with most stores stocking several packets for their customers. Setting up a battery manufacturing unit from home or a small premise is fairly inexpensive.

Air conditioner maintenance

Nowadays, air conditioners are an essential component of several houses and most offices. Hence, there is an ever-increasing demand for small businesses who can offer excellent maintenance of these expensive appliances.

Trends nowadays is expected, people are willing to sign annual contracts for maintenance of their air conditioners.

All you need is some basic equipment required to service air conditioners and skilled manpower who can perform the tasks. Acquiring skills in maintenance and repair of air conditioners- especially window and split types- is fairly easy.

​​Renting scooters and motorcycles

Tourists, salesmen and small business owners look for hiring scooters and motorcycles while visiting a town or city.

Renting such a two-wheeler saves them precious time and offers ease of commuting. With a small investment, you can open a scooter and motorcycle rental business.

You need not rush into buying a fleet of vehicles. A couple of two-wheelers will suffice to begin with. However, you will need to get proper licensing, insurance and permits before renting out these vehicles on a short term basis.

Employee background checks

With most places in India witnessing high migration of labor, several companies now resort to employee background checks. This means they verify information provided by a jobseeker through an external agency.

Checks include verification of work experience and educational qualifications. This is a rather simple and low investment business to open.

You will need a database of companies that require employee background checks, computers, and landline telephones to open this small business idea.

Extra: Broken glass

Strange as it may sound, there exists a huge market for broken glass. Millions of glass bottles that cannot be recycled, as discarded daily in India.

Shards of broken glass are used in building compound walls of bungalows. They deter robbers from scaling the compound wall to gain access to the bungalow.

Glass shards also prevent reptiles like snakes from slithering over the compound wall. A word of caution: Dealing in broken glass can be hazardous and has to be done with extreme care.

Extra: Apiary & honey

Here is one great small business idea with low investment, provided you have a garden or open plot of land. Setting up an apiary to breed honeybees is inexpensive.

You will also require some basic equipment to extract honey from honeycombs. Homemade honey fetches a great price.

Royal Jelly, produced for the queen bee, commands a high price in the market from individuals and medical companies.

Before investing

Remember, having ample capital to invest in a small business of your choice is not enough. You also require the necessary skills to ensure its proper functioning.

Before entering into any venture, it is advisable to know licensing procedures and other legalities concerned.

It is better to legitimize your business since it can help you get loans and subsidies in the future. It will also protect you against any lawsuits.